If the economy is so fragile that the government cannot allow failure, then we are indeed close to collapse - Seth Klarman, money manager, via ZerohedgeThat Zerohedge link is worth the quick read. It has been reported over the past couple of weeks that CNBC's viewership has fallen to all-time lows this year. It's a trend that's been ongoing since the economy crapped out in 2007. In fact, the New York Post has reported that Larry "Cocaine Brain" Kudlow's show - "The Kudlow Report" has been cancelled, citing that viewership in its key demographic, 24 - 50 yr olds - is off 60%. Kudlow's rise and fall as Chief Economist at Bear Stearns (he fell victim to a vicious cocaine, pill and alcohol addiction) was emblematic of the way in which Wall Street as a whole will rise and fall.
We'll know the collapse is coming sooner rather later when CNBC's viewership plummets to nothing - Dave and Friend of Dave circa mid-2002
Interestingly, the Fed-money printing-driven pop in the stock market has done nothing to reverse the falloff in CNBC's viewership. And Fox Biz and Bloomberg barely have any viewers. It tells me that most people understand that the big stock market move higher is completely artificial and absurd.
And don't say I didn't warn you about your 401k's and IRA's. Orrin "Magic Underwear" Hatch has introduced legislation to "create a new public retirement plan in which insurance companies pay benefits through annuity contracts" (New York Times).
Annuities? I have written some posts over the years in which I said that eventually the Government will takeover the retirement fund system and replace what you have with an annuitized fund that will be primarily funded with Treasuries. It's a most convenient way to keep the Treasury bond treadmill funded when foreign buyers like the Chinese disappear. I also said back in 2003 that before the system collapsed, the elitists would sweep every last crumb of public wealth off the table and into their own pockets - the last great asset of the public being the $16 trillion in retirement assets.
If you look at Hatch's biggest contributors by industry, #1 is Securities and Investments and #4 is Insurance: LINK I suspect that at some point in the legislative process that JP Morgan and Goldman Sachs will barge their way into seats at the retirement fund feeding trough. Certainly they've given Mr. Magic Underwear enough money to earn that seat.
Now that the Government spies on every aspect of everyone's life - with Hatch's full support, especially given that the massive multi-billion dollar NSA facility which houses all the computers used for its esponiage is conveniently situated in Utah and Obamacare is proving to be a complete financial clusterf*ck, now it's the Government's turn to takeover your retirement funding.
Good luck to you all who keep your money in your IRAs. Don't cry that you weren't warned when it happens in totality.